Methodology for the Broadband Development Index (IDBA) for Latin

Transcription

Inter-American
Development Bank
Institutions for
Development Sector (IFD),
Institutional Capacity of
the State Division (ICS)
DISCUSSION PAPER
Methodology for the
Broadband Development
Index (IDBA) for Latin
America and the
Caribbean
No. IDB-DP-336
Antonio Garcia Zaballos
Felix Gonzalez Herranz
Enrique Iglesias Rodriguez
February 2014
Methodology for the Broadband
Development Index (IDBA) for Latin
America and the Caribbean
Antonio Garcia Zaballos
Felix Gonzalez Herranz
Enrique Iglesias Rodriguez
Inter-American Development Bank
2014
http://www.iadb.org
The opinions expressed in this publication are those of the authors and do not necessarily
reflect the views of the Inter-American Development Bank, its Board of Directors, or the
countries they represent.
The unauthorized commercial use of Bank documents is prohibited and may be punishable
under the Bank's policies and/or applicable laws.
Copyright © 2014 Inter-American Development Bank. All rights reserved; may be freely
reproduced for any non-commercial purpose.
Contact: Enrique Iglesias Rodriguez, enriqueig@IADB.ORG
Methodology for the Broadband Development Index (IDBA) for Latin
America and the Caribbean
Antonio Garcia Zaballos (antoniogar@iadb.org)
Felix Gonzalez Herranz (felixg@iadb.org)
Enrique Iglesias Rodriguez (enriqueig@iadb.org)
Abstract*
This discussion paper describes the methodology used to compute the Broadband
Development Index (IDBA, Indice de Desarrollo de la Banda Ancha). The main
goal of the IDBA is to size the Digital Divide in Latin America and the Caribbean
by measuring the state of broadband development in the 26 Bank-member
countries, as well as in additional reference countries (64 nations in total). The
IDBA is a powerful tool to identify the magnitude of the gap in two different
geographic approached, first when we compare the state of the art of one country
versus the cluster region the country belongs to, and second, when we compare
the country with respect to the OECD. The IDBA relies on a comprehensive
approach based on four pillars: infrastructure, applications and capacity, strategic
regulations, and public policy and strategic vision. Those four pillars are built as a
result of the combination of 37 indicators from renowned international
institutions. As a result, the IDBA provides a tool for decision makers and
policymakers to detect, on a country basis, strengths and areas for improvement in
developing specific, concrete and actionable plans.
JEL Codes: L4, L5, L86, L88, L96, L98, M15, O38, O54
Keywords:
IDBA,
index,
broadband,
digital
divide,
telecommunications, regulation, public policies, infrastructure
*
measure,
The authors and the Inter-American Development Bank (IDB) are grateful to all of the institutions whose data have
been used as sources for the index, namely, the International Telecommunications Union, the World Economic
Forum, the United Nations, the World Bank, the INSEAD, and colleagues of the IDB. We also thank Deloitte
Strategy Consulting, for conducting the data collection, modeling, and structuring, as well as the experts who
provided useful recommendations and guidance.
Table of Contents
1 INTRODUCTION ................................................................................................................ 1 2 THE IDBA AND ITS IMPORTANCE .................................................................................... 2 2.1 2.2 2.3 2.4 2.5 The Geographic Scope ....................................................................................... 3 The Importance of Cross-Regional Analysis: IDBA in Clusters ....................... 4 The Periodicity of the Computation ................................................................... 5 The IDBA Approach .......................................................................................... 6 Meeting IDB Priorities ....................................................................................... 6 3 IDBA COMPUTATION AND METHODOLOGY..................................................................... 7 3.1 3.2 3.3 3.4 Overall Index ...................................................................................................... 7 The Pillars ........................................................................................................... 8 The Services ..................................................................................................... 10 The Variables.................................................................................................... 11 Main variables ................................................................................................. 11 Auxiliary variables........................................................................................... 25 3.5 Variables Normalization ................................................................................... 28 3.6 The Clusters ...................................................................................................... 30 4 DETERMINING THE PILLAR WEIGHTS ............................................................................. 32 4.1 4.2 4.3 4.4 Statistical Analysis ........................................................................................... 32 A Pillar Depending on the Other Three ............................................................ 33 Expert Consultations ........................................................................................ 33 Conclusions ...................................................................................................... 34 5 MAIN RESULTS .............................................................................................................. 35 5.1 What the Ranking Shows ................................................................................. 43 6 SOURCES ........................................................................................................................ 44 7 DATA AVAILABILITY ..................................................................................................... 44 8 NEXT STEPS ................................................................................................................... 45 8.1 Improvements to the Index ............................................................................... 45 8.2 Data Visualization: The Web Platform ............................................................ 45 9 FINAL CONCLUSIONS ..................................................................................................... 46 List of Figures
Figure 1. The Ecosystem of the Pyramid ...................................................................................................................... 2 Figure 2. IDBA Structure .............................................................................................................................................. 8 Figure 3. IDBA and GDP Per Capita .......................................................................................................................... 43 List of Tables
Table 1. IDB Member Countries ................................................................................................................................... 3 Table 2. Non-member Countries ................................................................................................................................... 3 Table 3. Cluster 1: IDB Member Countries .................................................................................................................. 4 Table 4. Cluster 2: IDB Central American Countries ................................................................................................... 4 Table 5. Cluster 3: IBD Caribbean Countries ............................................................................................................... 4 Table 6. Cluster 4: IDB Andean Countries ................................................................................................................... 4 Table 7. Cluster 5: IDB Southern Cone Countries ........................................................................................................ 4 Table 8. Cluster 6: OECD Countries ............................................................................................................................ 5 Table 9. Cluster 7: OECD Asia Pacific Countries ........................................................................................................ 5 Table 10. Cluster 8: OECD Europe, Middle East, and African Countries .................................................................... 5 Table 11. Cluster 9: OECD North American, Latin American, and Caribbean Countries ............................................ 5 Table 12. Cluster 9: OECD North American, Latin American, and Caribbean Countries ............................................ 5 Table 13. Pillar 1: Public Policy and Strategic Vision .................................................................................................. 8 Table 14. Pillar 2: Strategic Regulation ........................................................................................................................ 9 Table 15. Pillar 3: Infrastructure ................................................................................................................................... 9 Table 16. Pillar 4: Application and Capacity ................................................................................................................ 9 Table 17. Fixed Broadband Service and Mobile Broadband Service .......................................................................... 10 Table 18. Variables and Weights Per Pillar ................................................................................................................ 11 Table 19. Variable Government Procurement of Advanced Technology Products .................................................... 13 Table 20. Variable Government Prioritization of ICT ................................................................................................ 13 Table 21. Variable Importance of ICT to Government Vision of the Future .............................................................. 14 Table 22. Variable Current Status of Broadband Development Plans ........................................................................ 14 Table 23. Variable Fixed Broadband Internet Monthly Subscription ......................................................................... 15 Table 24. Variable Laws Relating to ICT ................................................................................................................... 15 Table 25. Variable Effectiveness of the Fund for Universal Access and Service ....................................................... 16 Table 26. Variable Internet and Telephony Sectors Competition Index ..................................................................... 16 Table 27. Variable Number of Competitors in Fixed Broadband ............................................................................... 17 Table 28. Variable Number of Competitors in Mobile Broadband ............................................................................. 17 Table 29. Variable Percentage of Population Covered by a Mobile Cellular Network ............................................... 17 Table 30. Variable Secure Internet Servers ................................................................................................................. 18 Table 31. Variable Percentage of Households with a Computer ................................................................................. 18 Table 32. Variable Percentage of Households with Internet Access ........................................................................... 18 Table 33. Variable Fixed Broadband Subscriptions Per 100 Inhabitants .................................................................... 18 Table 34. Variable Active Mobile Broadband Subscriptions Per 100 Inhabitants ...................................................... 19 Table 35. Variable Fixed Telephony Lines Per 100 Inhabitants ................................................................................. 19 Table 36. Variable Fixed Broadband Speed ............................................................................................................... 20 Table 37. Variable International Internet Bandwidth Per Internet User ...................................................................... 20 Table 38. Variable Firm-level Technology Absorption .............................................................................................. 21 Table 39. Variable eGovernment Development Index ................................................................................................ 21 Table 40. Variable Percentage of Individuals Using the Internet ............................................................................... 21 Table 41. Variable Internet Access in Schools ........................................................................................................... 22 Table 42. Variable Accessibility of Digital Content ................................................................................................... 22 Table 43. Variable Use of Virtual Social Networks .................................................................................................... 23 Table 44. Variable Video Uploads on YouTube ......................................................................................................... 23 Table 45. Variable Tertiary Education Enrollment Rate ............................................................................................. 23 Table 46. Variable Secondary Enrollment Rate .......................................................................................................... 24 Table 47. Auxiliary Variable Population .................................................................................................................... 25 Table 48. Auxiliary Variable GDP ............................................................................................................................. 25 Table 49. Auxiliary Variable GDP per capita ............................................................................................................. 26 Table 50. Auxiliary Variable Households ................................................................................................................... 26 Table 51. Auxiliary Variable Population Density ....................................................................................................... 26 Table 52. Auxiliary Variable Surface Area ................................................................................................................. 26 Table 53. Auxiliary Variable Persons per household .................................................................................................. 27 Table 54. Auxiliary Variable Purchasing Power Parity (PPP) Conversion Factor ...................................................... 27 Table 55. Auxiliary Variable Fixed broadband Internet monthly subscription (USD) ............................................... 27 Table 56. Normalization Method for Variables: Number of Competitors in Fixed Broadband and Number of
Competitors in Mobile Broadband .............................................................................................................................. 29 Table 57. Normalization Method for Variable Current Status of Broadband Development Plans ............................. 29 Table 58. Normalization Method for Variable Effectiveness of the Fund for Universal Access and Service ............ 29 Table 59. Grouping Method Per Variable ................................................................................................................... 31 Table 60. Correlation Factor for the Pillars against Fixed Broadband Penetration and Mobile Broadband Penetration
.................................................................................................................................................................................... 32 Table 61. Correlation Factor for Each of the Pillars Against the Other Three Pillars ................................................. 33 Table 62. Results of Expert Consultations (weights given to each of the pillars) ....................................................... 33 Table 63. Variables and Pillars’ Weight Calculation .................................................................................................. 34 Table 64. IDBA Main Results .................................................................................................................................... 35 Table 65. Public Policies and Strategic Vision Pillar Main Results ............................................................................ 36 Table 66. Strategic Regulation Pillar Main Results .................................................................................................... 38 Table 67. Infrastructure Pillar Main Results ............................................................................................................... 40 Table 68. Application and Capacity Pillar Main Results ............................................................................................ 41 Table 69. Future Improvements to the IDBA ................................................................................................... 45 List of Equations
Equation 1. IDBA Formula ........................................................................................................................................... 7 Equation 2. Normalization Formula for Percentage Variables ................................................................................... 28 Equation 3. Normalization Formula for Range Variables ........................................................................................... 28 Equation 4. Normalization Formula for Absolute Value Variables ............................................................................ 30 Equation 5. Normalization Formula for Absolute Value Variables (special case) ...................................................... 30 1
Introduction
We are experiencing a new era of communications among human beings through the use of
machines. Telecommunications, Internet, and information and communication technologies
(ICTs) transform lives and shape a new panorama of mutual interactions. Exponential
technological developments allow citizens, companies, and governments to improve their
communication and greatly increase their ability to exchange information.
Broadband plays a crucial role as a catalyst for further development of this
communication and facilitates economic growth and social inclusion. According to a study
published by the Inter-American Development Bank (IDB), in countries where broadband
penetration increases 10 percentage points, there is an increase of 3.19 percent in GDP, a 2.61
percent increase in productivity, and a net generation of more than 67,000 jobs.1
Despite these facts, it is common to regard broadband as being merely high-speed
connectivity, and to leave out all of the intertwined social and economic aspects that arise from
that connectivity. It is possible to see Broadband more clearly when it is considered from a
holistic perspective as an ecosystem of pieces that work together to produce outcomes far greater
and more complex than simple increases in the speed of data transmission. A useful way to
describe this ecosystem is to look at it is as a set of layers that form a pyramid. Herein, this
collection of layers is referred to as the ecosystem of the pyramid (see Figure 1).
The ecosystem of the pyramid conceives of broadband as a set of supporting layers,
ranging from infrastructure to the actual personal use of those connectivity elements.
Nonetheless, the layers should not be seen as additive, but rather as part of a comprehensive
ecosystem that must be considered as a whole. For instance, Internet content is only accessible
and relevant when there is an application that carries it, a device that allows use of the
application, information management systems, and an efficient network infrastructure.
Infrastructure would be merely a dump channel without all of these layers taken together as a
whole. Moreover, the different players fill a key role in each of the elements in the ecosystem of
the pyramid.
1
See García-Zaballos, A., and R. López-Rivas. 2012. “Socioeconomic Impact of Broadband in Latin American and
Caribbean Countries.” IDB Technical Note No. IDB-TN-471. Washington, DC: IDB. Available at bit.ly/1feSze0.
In addition to the horizontal layers, the ecosystem of the pyramid conceives of a set of
facilitating transversal elements: (i) strategic public policies, (ii) regulation and legislation, and
(iii) training and creation of awareness. These are levers that boost the different elements of the
ecosystem either in access (network infrastructure and information systems) or adoption and
usage (devices, applications/services and content).
Figure 1. The Ecosystem of the Pyramid
With the ecosystem approach, the IDB created a comprehensive Broadband Development
Index (IDBA) that measures the different elements of the ecosystem arranged around four
pillars: (i) infrastructure, (ii) public policies, (iii) strategic regulation, and (iv) applications and
capacity. Although the index appears to be a system of ranking, the objective of the IDBA is not
to compile a classification but rather to spot the strengths and weaknesses of the countries. This
coincides with the goal of helping Latin American and Caribbean (LAC) countries improve their
strategies to boost broadband and information and communication technologies (ICTs)
2
The IDBA and Its Importance
The IDBA is a holistic approach to measuring the degree of broadband development with a
special focus in the LAC region. As mentioned in the Introduction, the analysis is articulated
around four main pillars that map the different elements of the ecosystem: (i) public policy and
2 strategic vision, (ii) strategic regulation (iii), infrastructure, and (iv) applications and capacity.
Each of the pillars is a subindex constructed from the set of variables (28 variables in total) that
were selected according to their relevance to the pillar system and for the degree to which the
data was easily available.
2.1
The Geographic Scope
The IDBA was computed for the 26 countries where the IDB has operations:
Table 1. IDB Member Countries
Argentina
Bahamas
Barbados
Belize
Bolivia
Brazil
Chile
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Guatemala
Guyana
Haiti
Honduras
Jamaica
Mexico
Nicaragua
Panama
Paraguay
Peru
Surinam
Trinidad/Tobago
Uruguay
Venezuela
Due to the importance of analyzing the status of the broadband ecosystem not only in the
region but comparing it to the rest of the world, a reference set of international countries was
established for the study, and the IDBA was computed for each of them. Rather than highlighting
the digital divide between the LAC countries and the reference group, the IDBA instead aims to
identify the strongest performers for each of the variables so that the LAC countries can benefit
from their experience and best practices.
Table 2. Non-member Countries
Australia
France
Japan
Slovenia
Austria
Greece
Luxembourg
South Africa
Belgium
Hungary
New Zealand
South Korea
Canada
India
Netherlands
Spain
China
Indonesia
Norway
Sweden
Czech Republic
Ireland
Poland
Switzerland
Denmark
Iceland
Portugal
Turkey
Germany
Israel
Russia
United Kingdom
Estonia
Italy
Republic of Slovakia
United States
Finland
3 2.2
The Importance of Cross-Regional Analysis: IDBA in Clusters
Given the importance of regionalization, the IDBA incorporates the concept in order to allow
cross-regional comparisons, as well as to observe trends and lessons learned within specific
regions. For that purpose, the countries are grouped into nine clusters.
Table 3. Cluster 1: IDB Member Countries
Argentina
Bahamas
Barbados
Belize
Bolivia
Brazil
Chile
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Guatemala
Guyana
Haiti
Honduras
Jamaica
Mexico
Nicaragua
Panama
Paraguay
Peru
Surinam
Trinidad/Tobago
Uruguay
Venezuela
Table 4. Cluster 2: IDB Central American Countries
Belize
El Salvador
Honduras
Nicaragua
Costa Rica
Guatemala
Mexico
Panama
Dominican Republic
Bahamas
Barbados
Bolivia
Colombia
Argentina
Brazil
Table 5. Cluster 3: IBD Caribbean Countries
Guyana
Jamaica
Trinidad
Tobago
Haiti
Surinam
Table 6. Cluster 4: IDB Andean Countries
Ecuador
Peru
Table 7. Cluster 5: IDB Southern Cone Countries
Chile
Paraguay
Uruguay
Venezuela
4 and
Australia
Austria
Belgium
Canada
Chile
Czech Republic
Denmark
Germany
Estonia
Australia
Table 8. Cluster 6: OECD Countries
Finland
Luxembourg
France
Mexico
Greece
New Zealand
Hungary
Netherlands
Ireland
Norway
Iceland
Poland
Israel
Portugal
Italy
Japan
Slovenia
South Korea
Spain
Sweden
Switzerland
Turkey
United Kingdom
United States
Table 9. Cluster 7: OECD Asia Pacific Countries
Japan
New Zealand
South Korea
Table 10. Cluster 8: OECD Europe, Middle East, and African Countries
Austria
Germany
Luxembourg
Spain
Belgium
Greece
Netherlands
Sweden
Czech Republic
Hungary
Norway
Switzerland
Denmark
Iceland
Poland
Turkey
Estonia
Ireland
Portugal
United Kingdom
Finland
Israel
France
Italy
Slovenia
Table 11. Cluster 9: OECD North American, Latin American, and Caribbean Countries
Canada
Chile
Mexico
United States
Some other countries were considered although not explicitly clustered.
Table 12. Cluster 9: OECD North American, Latin American, and Caribbean Countries
Non-clustered Countries
China
Indonesia
Russia
South Africa
India
2.3
The Periodicity of the Computation
It is important to acknowledge the tremendous efforts over the last several years of the LAC
countries to promote broadband access, adoption, and usage. The IDBA was calculated annually
for the years 2010, 2011, and 2012. The results of this work show the solid progression of the
5 LAC region in the area of broadband communications. Additionally, it is necessary to recognize
the importance of mobile broadband in addition to that of fixed broadband. Mobile broadband is
significant due to high mobile penetration in the region. In countries such as Paraguay and
Bolivia, mobile broadband penetration is higher than fixed broadband penetration. In fact, the
aggregate results show a higher mobile broadband penetration in 2011, with 11.01 percent
mobile (growing from 5.64 percent in 2010), while the fixed broadband reached 7.58 percent in
2011 (growing from 6.48 percent in 2010).
2.4
The IDBA Approach
The IDBA offers a holistic approach to assess the status quo of the broadband ecosystem in the
LAC region and, more importantly, to identify areas where further effort is needed. Any
policymaker, government, or international organization can use the IDBA to identify areas for
improvement as well as to find examples of countries within and outside the region that can be
used as a model for those who are in an earlier phase of broadband development.
In addition to the above, the IDBA meets the need to measure the impacts and results of
the projects that are intended to improve broadband in the region. By helping to identify the
needs in terms of development and the measurement of the impacts and results, the IDBA
simplifies the processes of project identification, prioritization, and impact evaluation.
Another important contribution of the IDBA is that it offers a comprehensive approach to
measuring the broadband status of a country, taking into account the four major pillars (i.e.,
public policies, regulation, infrastructure, and applications/training), and allowing a fast and
global evaluation by calculating a single index.
2.5
Meeting IDB Priorities
The IDB has recently launched a three-part initiative called the Special Program for Broadband
(Programa Especial de Banda Ancha). The initiative focuses on three main areas: (i) public
policies, (ii) regulatory frameworks, and (iii) capacity building. Three of the IDBA pillars
directly match these areas. The fourth, although not part of the Special Program for Broadband,
is also a priority for the IDB and is the focus of various projects.
Additionally, the IDBA is the flagship knowledge product of the Special Program and is one
of the key tools it uses in its operations. The IDBA is not only a tool used to identify the tasks
6 that countries and regions should prioritize, but it also allows for the tracking of the impacts and
results of IDB projects and technical cooperation.
3
3.1
IDBA Computation and Methodology
Overall Index
The IDBA, which ranges from 1 (lowest) to 8 (highest), is computed as follows:
Equation 1. IDBA Formula
𝑰𝑫𝑩𝑨 = 𝑷𝒑𝒐𝒍 ∗ 𝒘𝒑𝒐𝒍 + 𝑷𝒓𝒆𝒈 ∗ 𝒘𝒓𝒆𝒈 + 𝑷𝒊𝒏𝒇 ∗ 𝒘𝒊𝒏𝒇 + 𝑷𝒂𝒑𝒑 ∗ 𝒘𝒂𝒑𝒑
𝑤ℎ𝑒𝑟𝑒:
𝑃!"# = 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑖𝑙𝑙𝑎𝑟 𝑖𝑛 𝑝𝑢𝑏𝑙𝑖𝑐 𝑝𝑜𝑙𝑖𝑐𝑦 𝑎𝑛𝑑 𝑠𝑡𝑟𝑎𝑡𝑒𝑔𝑖𝑐 𝑣𝑖𝑠𝑖𝑜𝑛 (𝑠𝑢𝑏𝑖𝑛𝑑𝑒𝑥)
𝑤!"# = 𝑤𝑒𝑖𝑔ℎ𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑖𝑙𝑙𝑎𝑟 𝑖𝑛 𝑝𝑢𝑏𝑙𝑖𝑐 𝑝𝑜𝑙𝑖𝑐𝑦 𝑎𝑛𝑑 𝑠𝑡𝑟𝑎𝑡𝑒𝑔𝑖𝑐 𝑣𝑖𝑠𝑖𝑜𝑛 = 20%
𝑃!"# = 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑖𝑙𝑙𝑎𝑟 𝑖𝑛 𝑠𝑡𝑟𝑎𝑡𝑒𝑔𝑖𝑐 𝑟𝑒𝑔𝑢𝑙𝑎𝑡𝑖𝑜𝑛 𝑠𝑢𝑏𝑖𝑛𝑑𝑒𝑥
𝑤!"# = 𝑤𝑒𝑖𝑔ℎ𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑖𝑙𝑙𝑎𝑟 𝑖𝑛 𝑠𝑡𝑎𝑡𝑒𝑔𝑖𝑐 𝑟𝑒𝑔𝑢𝑙𝑎𝑡𝑖𝑜𝑛 = 25%
𝑃!"# = 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑖𝑙𝑙𝑎𝑟 𝑖𝑛 𝑖𝑛𝑓𝑟𝑎𝑠𝑡𝑟𝑢𝑐𝑡𝑢𝑟𝑒 𝑠𝑢𝑏𝑖𝑛𝑑𝑒𝑥
𝑤!"# = 𝑤𝑒𝑖𝑔ℎ𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑖𝑙𝑙𝑎𝑟 𝑖𝑛 𝑖𝑛𝑓𝑟𝑎𝑠𝑡𝑟𝑢𝑐𝑡𝑢𝑟𝑒 = 40%
𝑃!"" = 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑖𝑙𝑙𝑎𝑟 𝑖𝑛 𝑎𝑝𝑝𝑙𝑖𝑐𝑎𝑡𝑖𝑜𝑛 𝑎𝑛𝑑 𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑠𝑢𝑏𝑖𝑛𝑑𝑒𝑥
𝑤!"" = 𝑤𝑒𝑖𝑔ℎ𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑖𝑙𝑙𝑎𝑟 𝑖𝑛 𝑎𝑝𝑝𝑙𝑖𝑐𝑎𝑡𝑖𝑜𝑛 𝑎𝑛𝑑 𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦 = 15% 𝐸𝑎𝑐ℎ 𝑝𝑖𝑙𝑙𝑎𝑟 𝑖𝑠 𝑐𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒𝑑 𝑎𝑠 𝑓𝑜𝑙𝑙𝑜𝑤𝑠:
!
𝑃! =
𝑉! ∗ 𝑤!
!
𝑛 𝑖𝑠 𝑡ℎ𝑒 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒𝑠
𝑉! = 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑤! = 𝑤𝑒𝑖𝑔ℎ𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 Each of the pillars ranges from 1 to 8, as is the case for the index and the variables. The
variables, due to their heterogeneity, have been normalized (see Section 3.5). Also, each of the
pillars has a specific weight that reflects its importance within the ecosystem, and each of the
variables is evenly weighted within the same pillar (see Section 3.4).
7 Figure 2. IDBA Structure IDBA 40 15 Infrastructure Application and Capacity 25 20 Public Policy and Strategic Vision Strategic R
egulation 11 Mobile cellular network coverage 11 Firm -‐ level tech. absorption 17 Fixed BB monthly subscription 25 Gov. procurement of technology products 11 Secure Internet servers 11 e -‐ Government development index 17 Laws relating to ICT 25 Government prioritization of ICT 11 Households with a computer (%) 11 Individuals using the Internet (%) 17 USF effectiveness 25 Importance of ICT to gov. vision 11 H ouseholds with Internet access (%) 11 Internet access in schools 17 Internet & telephony competition index 25 Current status of broadband plans 11 Fixed broadband subscriptions (%) 11 Accessibility of digital content 17 Number of comp. in fixed broadband 11 Mobile broadband Sub-‐scriptions (%) 11 Use of virtual social networks 17 Number of comp. in mobile broadband 11 Fixed telephony (%) 11 Video uploads on YouTube 11 Fixed broadband speed (Mbps) 11 Tertiary education enrollment rate 11 Intern. Internet BW (bps per user) 11 Secondary enrollment rate Pillar Weight of the pillar (%) Variable Weight of the variable (%) 3.2
The Pillars
The four pillars correspond to the four areas that explain the broadband ecosystem.
Description
Weight
Variables
Table 13. Pillar 1: Public Policy and Strategic Vision
This pillar measures the importance given by the government to public
policies that foster the development of broadband and ICTs. Other than
assessing the role and priority of ICTs for the government, this pillar also
assesses the current status of national broadband plans and their importance
to the government.
20%
1.1. Government procurement of advanced technology products
1.2. Government prioritization of ICT
1.3. Importance of ICT to government’s vision of the future
1.4. Current status of broadband development plans
8 Description
Weight
Variables
Description
Weight
Variables
Description
Weight
Variables
Table 14. Pillar 2: Strategic Regulation
This pillar measures the degree of regulation within the country and its
effectiveness by analyzing specific key indicators such as competition,
prices, the current status of the telecommunications laws, and the
effectiveness of the fund for universal access and service.
25%
2.1. Fixed broadband internet monthly subscription
2.2. Laws relating to ICT
2.3. Effectiveness of the fund for the universal access and service
2.4. Internet and telephony sectors competition index
2.5. Number of competitors in fixed broadband
2.6. Number of competitors in mobile broadband
Table 15. Pillar 3: Infrastructure
This pillar measures the status of telecommunications infrastructure in terms
of access (fixed telephony, mobile telephony, fixed broadband, and mobile
broadband), adoption (computers and servers), and quality (speeds).
40%
3.1. Percentage of the population covered by a mobile cellular network
3.2. Secure Internet servers
3.3. Percentage of households with a computer
3.4. Percentage of households with internet access
3.5. Fixed broadband subscriptions per 100 inhabitants
3.6. Active mobile broadband subscriptions per 100 inhabitants
3.7. Fixed telephony lines per 100 inhabitants
3.8. Fixed broadband speed, in Mbit/s
3.9. International Internet bandwidth (bit/s) per internet user
Table 16. Pillar 4: Application and Capacity
This pillar measures the degree of ICT literacy and ICT usage by
government, private sector, and citizens. It also measures the ease of gaining
access to content as well as the level of education within the population,
which is a key metric for the development of ICT.
15%
4.1. Firm-level technology absorption
4.2. eGovernment development index
4.3. Percentage of individuals using the internet
4.4. Internet access in schools
9 4.5.
4.6.
4.7.
4.8.
4.9.
3.3
Accessibility of digital content
Use of virtual social networks
Video uploads on YouTube
Tertiary education enrollment rate
Secondary enrollment rate
The Services
The services are two specific subindexes that are horizontal to all of the pillars that measure the
degree of development of fixed broadband and mobile broadband. Each of the two services is
created from an evenly weighted combination of a subset of the 26 variables.
Table 17. Fixed Broadband Service and Mobile Broadband Service
Fixed
Mobile
Variable
Broadband
Broadband
Service
Service
Government procurement of advanced technology products
X
X
Government prioritization of ICT
X
X
Importance of ICT to government vision of the future
X
X
Current status of broadband development plans
X
X
Fixed broadband internet monthly subscription
X
Laws relating to ICT
X
X
Effectiveness of the fund for universal access and service
X
X
Internet and telephony sectors competition index
X
X
Number of competitors in fixed broadband
X
Number of competitors in mobile broadband
X
Percentage of the population covered by a mobile cellular
X
network
Secure Internet servers
X
X
Percentage of households with a computer
X
X
Percentage of households with Internet access
X
Fixed broadband subscriptions per 100 inhabitants
X
Active mobile broadband subscriptions per 100 inhabitants
X
Fixed telephony lines per 100 inhabitants
X
Fixed broadband speed, in Mbit/s
X
International Internet bandwidth (bit/s) per Internet user
X
Firm-level technology absorption
X
X
eGovernment development index
X
X
Percentage of individuals using the Internet
X
X
10 Internet access in schools
3.4
X
X
X
X
X
X
X
X
X
X
X
X
The Variables
The variables are a set of indicators selected based on certain criteria, which include relevance to
the IDBA ultimate objective and data availability.
Main variables
A total of 28 main, simple variables were included in the analysis: the International
Telecommunications Union produces 9, the IDB, 4; the World Economic Forum, 12, the United
Nations, 1; and the INSEAD, 1; and the International Telecommunications Union and the World
Bank, 1. All of them receive the same weight in their respective pillars (see Table 17), and the
description, when derived from a source other than the IDB, corresponds to the description
provided by that source.
Table 18. Variables and Weights Per Pillar
Weight Within Pillar
Pillar 1: Public policy and strategic vision
25%
1.1. Government
procurement of
advanced technology
products
25%
1.2. Government
prioritization of ICT
25%
1.3. Importance of ICT to
government’s vision of
the future
25%
1.4. Current status of
broadband development
plans
Pillar 2: Strategic regulation
2.1. Fixed broadband
monthly subscription
charge
2.2. Laws relating to ICT
Weight Within IDBA
5%
5%
5%
5%
17%
4.2%
17%
4.2%
11 2.3. Effectiveness of the fund
for universal access and
service
2.4. Internet and telephony
sectors competition
index
2.5. Number of competitors
in fixed broadband
2.6. Number of competitors
in mobile broadband
Pillar 3: Infrastructure
3.1. Percentage of the
population covered by a
mobile cellular network
3.2. Secure internet servers
3.3. Percentage of
households with a
computer
3.4. Percentage of
households with Internet
access
3.5. Fixed broadband
subscriptions per 100
inhabitants
3.6. Active mobile
broadband subscriptions
per 100 inhabitants
3.7. Fixed telephony lines per
100 inhabitants
3.8. Fixed broadband speed,
in Mbit/s
3.9. International Internet
bandwidth (bit/s) per
Internet user
Pillar 4: Application and capacity
4.1. Firm-level technology
absorption
4.2. eGovernment
development index
4.3. Percentage of
individuals using the
Internet
4.4. Internet access in
schools
4.5. Accessibility of digital
17%
4.2%
17%
4.2%
17%
4.2%
17%
4.2%
11%
4.4%
11%
11%
4.4%
4.4%
11%
4.4%
11%
4.4%
11%
4.4%
11%
4.4%
11%
4.4%
11%
4.4%
11%
1.7%
11%
1.7%
11%
1.7%
11%
1.7%
11%
1.7%
12 4.6.
4.7.
4.8.
4.9.
content
Use of virtual social
networks
Video uploads on
YouTube
Tertiary education
enrollment rate
Secondary enrollment
rate
11%
1.7%
11%
1.7%
11%
1.7%
11%
1.7%
Pillar 1: Public Policy and Strategic Vision
Table 19. Variable Government Procurement of Advanced Technology Products
Description
This indicator corresponds to a survey asking: “Do government
procurement decisions foster technology innovation in your country?”
Values range from 1 (no, not at all) to 7 (yes, extremely effectively).
Data for 2012 are the average of those for 2010 and 2011 from the NRI
(see below). Data for 2011 and 2012 were acquired from 2013 GCR
(see below).
Direct source
Indirect source2
Normalization
method
Description
Direct source
Indirect source
Data for 2010, 2011, and 2012 are the same under the criterion of last
known data.
World Economic Forum, Networked Readiness Index (NRI), 2012
World Economic Forum, Global Competitiveness Report (GCR), 2013
World Economic Forum, Executive Opinion Survey, 2010, 2011, and
2012 editions
Normalization for range variables
Table 20. Variable Government Prioritization of ICT
This indicator corresponds to a survey asking: “How much priority does the
government in your country place on information and communication
technologies?” Values range from 1 (weak priority) to 7 (high priority).
Data for 2010 are the average of those for 2010 and 2011 from the NRI (see
below). Data for 2011 and 2012 were acquired from 2013 GCR (see below).
World Economic Forum, Executive Opinion Survey, 2010 and 2011
2
Indirect source refers to the set of sources used by the direct source to create the indicator. N/A means not applicable
and corresponds to the case that indicator was created solely by the direct source.
13 Normalization
method
Table 21. Variable Importance of ICT to Government Vision of the Future
Description
This indicator corresponds to a survey asking: “To what extent does the
government have a clear implementation plan for utilizing information and
communication technologies to improve your country’s overall
competitiveness?” Values range from 1 (no plan) to 7 (clear plan).
Direct source
Indirect source
Normalization
method
(see below). Data for 2010, 2011, and 2012 are the same under the
criterion of last known data.
Table 22. Variable Current Status of Broadband Development Plans
Description
This indicator measures the degree of implementation of national
broadband plans by the government. For each country, it assesses whether
the country has a national broadband plan (value 8); whether broadband is
present in plans, agendas and other formats not strictly considered within
an official plan (value 5.66); whether broadband is in analysis phase by the
government (value 3.33); or whether broadband is completely absent
(value 1).
This indicator corresponds to a survey asking: “Do government
procurement decisions foster technology innovation in your country?”
Values range from 1 (no, not at all) to 7 (yes, extremely effectively).
Direct source
Indirect source
Normalization
method
Latest data available are for 2010. Data for 2011 and 2012 are the same as
for 2010, under the criterion of last known data.
Inter-American Development Bank, 2010
DIRSI, CEPAL, 2010
Normalization for range variables (special case)
14 Pillar 2: Strategic Regulation Table 23. Variable Fixed Broadband Internet Monthly Subscription
Description
Direct source
Indirect source
Normalization
method
Description
Direct source
Indirect source
Normalization
method
Fixed broadband sub-basket refers to the price of the monthly subscription
to an entry level fixed broadband plan. For the sake of comparison, the
fixed broadband sub-basket is based on a minimum monthly usage of 1
gigabyte (GB). For plans that limit the monthly amount of data transferred
by including caps below the 1 GB level, the cost for additional bytes is
added to the sub-basket. The minimum speed of a broadband connection is
256 kbit/s. Prices are reported and collected in national currency and then
converted to USD. Prices include taxes.
In order to offer a comparable measure, the variable is multiplied by the
World Bank’s power parity factor. This variable is described among the
auxiliary variables.
International Telecommunication Union, World Telecommunication/ICT
Development Report and database (2011).
N/A
Normalization for absolute value variables (special)
Table 24. Variable Laws Relating to ICT
This indicator corresponds to a survey asking: “How would you assess
your country’s laws relating to the use of ICTs (e.g., electronic commerce,
digital signatures, and consumer protection)?” Values range from 1 (highly
undeveloped) to 7 (well developed) This indicator is the 2011–2012
weighted average.
editions
15 Table 25. Variable Effectiveness of the Fund for Universal Access and Service
Description
This indicator measures the degree of implementation of national
broadband plans by the government. For each country, it assesses whether
the country has a fund for universal access and service and the degree to
which it uses the fund reasonably (value 8); whether it exists, but its use is
limited (value 6.25); whether it exists but is not used for broadband (value
4.5); or whether an access and service universal fund is completely absent
(value 1).
The latest data available are for 2010. Data for 2011 and 2012 are the same
as for 2010, under the criteria of last known data.
Direct source
Inter-American Development Bank, 2010 and 2011
Indirect source
DIRSI, CEPAL, HIPCAR, ITU
Normalization
method
Table 26. Variable Internet and Telephony Sectors Competition Index
Description
This variable measures the degree of liberalization in 19 categories of ICT
services, including 3G telephony, retail Internet access, services,
international long distance calls, and international gateways. For each
economy, the level of competition in each of the categories is assessed as
being a monopoly, partial competition, or full competition. The results
reflect the situation as of 2011. The index is calculated as the average
"Business Law and the Environment, Custom Edition" of points obtained
in each of the 19 categories for which data are available. Full liberalization
across all categories yields a score of 2, which is the best possible score.
Data for 2012 are collected in October 2011, as is the case in the NRI (see
below). Data for 2010, 2011, and 2012 are the same under the criterion of
last known data.
Direct source
Indirect source
Authors’ calculations based on International Telecommunication Union
(ITU), ITU World Telecommunication Regulatory Database
(accessed November 29, 2012)
Normalization
method
16 Table 27. Variable Number of Competitors in Fixed Broadband
Description
This variable measures the number of operators offering fixed
broadband service in each country. The values are obtained by
searching the national regulatory agencies’ websites in the fourth
quarter of 2012.
Direct source
Inter-American Development Bank (2012)
Indirect source
N/A
Normalization
method
Table 28. Variable Number of Competitors in Mobile Broadband
Description
Direct source
Indirect source
Normalization method
The variable measures the number of operators offering the mobile broadband
service in each country. The values are obtained by searching the national
regulatory agencies’ websites in the fourth quarter of 2012.
Inter-American Development Bank (2012)
N/A
Pillar 3: Infrastructure
Table 29. Variable Percentage of Population Covered by a Mobile Cellular Network
Description
Mobile population coverage measures the percentage of inhabitants that
are within range of a mobile cellular signal, whether or not they subscribe
to mobile cellular services (note that this is NOT the same as the mobile
subscription density or penetration). This value is calculated by dividing
the number of inhabitants within range of a mobile cellular signal by the
total population.
Direct source
Indirect source
Normalization
method
Where there are two or more operators, allowance should be made for the
extent of overlapping mobile population coverage (e.g., in the capital and
major cities), which must be deducted from the total.
Development Report and Database (2011)
N/A
Normalization for percentage variables
17 Description
Direct source
Indirect source
Normalization
method
Table 30. Variable Secure Internet Servers
It measures the number of Secure Internet servers in every one million
people. Secure Internet servers are servers using encryption technology in
Internet transactions.
The World Bank, World Development Indicators Online
(accessed on November 28, 2012; National Sources
Table 31. Variable Percentage of Households with a Computer
Description
Households with a computer refers to the percentage of households
with a computer at home. A computer includes a desktop, portable, or
handheld computer (e.g., a personal digital assistant). It does not
include equipment with embedded computing abilities such as mobile
phones or TV sets.
Direct source
International
Telecommunication
Union,
World
Telecommunication/ICT Development Report and Database (2011).
Indirect source
N/A
Normalization
method
Table 32. Variable Percentage of Households with Internet Access
Description
Households with internet access refers to the percentage of households
with internet access at home.
Direct source
International
Telecommunication
Union,
World
Indirect source
N/A
Normalization
method
Table 33. Variable Fixed Broadband Subscriptions Per 100 Inhabitants
Description
Data refer to subscriptions to high-speed access to the public Internet (a
TCP/IP connection) at downstream speeds equal to or greater than 256
kbit/s. This includes cable modem, DSL, fiber-to-the-home/building
and other fixed (wired) broadband subscriptions. This total is measured
irrespective of the method of payment. It excludes subscriptions that
have access to data communications (including the Internet) via mobile
cellular networks. It excludes technologies listed under the wireless
broadband category. Fixed broadband Internet subscribers per 100
18 Direct source
Indirect source
Normalization
method
inhabitants is obtained by dividing the number of fixed broadband
Internet subscribers by the population and then multiplying it by 100.
International
Telecommunication
Union,
World
N/A
Table 34. Variable Active Mobile Broadband Subscriptions Per 100 Inhabitants
Description
Active mobile broadband subscriptions refers to the sum of standard
mobile broadband and dedicated mobile broadband subscriptions to the
public Internet. It covers actual subscribers, not potential subscribers, even
though the latter may have handsets that are enabled for broadband.
Direct source
Indirect source
Normalization
method
Description
Development Report and Database (2011).
N/A
Table 35. Variable Fixed Telephony Lines Per 100 Inhabitants
A fixed telephone line (previously called main telephone line in
operation) is an active line connecting the subscriber's terminal
equipment to the public switched telephone network (PSTN). The fixed
telephone line has a dedicated port in the telephone exchange
equipment. This term is synonymous with the terms main station or
Direct Exchange Line (DEL) that are commonly used in
telecommunication documents. The fixed telephone line may not be the
same as an access line or a subscriber; it should includes the active
number of analog fixed telephone lines, ISDN channels, fixed wireless,
public payphones, and VoIP subscriptions. Active lines are those that
have registered an activity in the past three months. Data on fixed
telephone lines are derived using administrative data that countries
(usually the regulatory telecommunication authority or the ministry in
charge of telecommunications) collect regularly, and at least annually,
from telecommunications operators. Data are considered to be very
reliable, timely, and complete. Data for this indicator are readily
available for approximately 90 percent of countries, either through
ITU's World Telecommunication Indicators questionnaires or from
official information available on the ministry or regulator's website. For
the rest, information can be aggregated through operators' data (mainly
through annual reports) and complemented by market research reports.
The fixed telephone line (per 100 people) indicator is derived by
dividing all telephone lines by the country's population and multiplying
by 100.
19 Direct source
Indirect source
Normalization
method
Description
International
Telecommunication
Union,
World
N/A
Table 36. Variable Fixed Broadband Speed
Fixed (wired) broadband speed, in Mbit/s, refers to the advertised
maximum theoretical download speed (not the speeds guaranteed to users)
associated with a fixed (wired) broadband Internet monthly subscription.
The indicator refers to the published download speed of the fixed (wired)
broadband monthly subscription. It does not refer to the actual speed
delivered. It refers to fixed broadband, and not to speeds less than
broadband or wireless broadband. The upload speed should be mentioned
in a note.
Direct source
Indirect source
Normalization
method
The speed refers to the advertised download speed, not the actual speed
that is delivered.
N/A
Normalization for absolute value variables
Table 37. Variable International Internet Bandwidth Per Internet User
Description
International Internet bandwidth refers to the total used capacity of
international Internet bandwidth, in megabits per second (Mbit/s). It is
measured as the sum of used capacity of all Internet exchanges (locations
where Internet traffic is exchanged) offering international bandwidth. If
capacity is asymmetric (i.e., more incoming [downlink] than outgoing
[uplink] capacity), then the incoming (downlink) capacity should be
provided.
Direct source
Indirect source
N/A
Normalization
method
20 Pillar 4: Application and Capacity
Table 38. Variable Firm-level Technology Absorption
This indicator corresponds to a survey asking: “To what extent do
businesses in your country absorb new technology? Values range from 1
(not at all) to 7 (aggressively absorb).
Description
Direct source
Indirect source
Normalization
method
Table 39. Variable eGovernment Development Index
The Government Online Service Index assesses the quality of the
government’s delivery of online services on a zero-to-one (best) scale.
According to the United Nations’ Public Administration Network, the
Government Online Service Index captures a government’s performance in
delivering online services to its citizens. There are four stages of service
delivery: Emerging, Enhanced, Transactional, and Connected. Online
services are assigned to each stage according to their degree of
sophistication, from the more basic to the more sophisticated. In each
country, the performance of the government in each of the four stages is
measured as the number of services provided as a percentage of the
maximum services in the corresponding stage. Examples of services include
online presence, deployment of multimedia content, government solicitation
of citizen input, widespread data sharing, and the use of social networking.
Description
Direct source
Indirect source
Normalization
method
Description
World Economic Forum, Executive Opinion Survey, 2010, 2011, and 2012
editions
The data was collected for 2010, 2011, and 2012.
United Nations, United Nations E-Government Survey 2012: EGovernment for the People
Table 40. Variable Percentage of Individuals Using the Internet
This variable refers the percentage of individuals who have used the
Internet (from any location) in the last 12 months. Internet can be used via
computer, mobile phone, personal digital assistant, game machine, digital
TV, etcetera.
The Internet is a worldwide public computer network. It provides access to
21 Direct source
Indirect source
Normalization
method
Description
a number of communication services including the World Wide Web and
carries email, news, entertainment, and data files, irrespective of the device
used (not assumed to be only via computer—it may also be via mobile
phone, PDA, game machine, digital TV, etc.) Access can be via fixed or
mobile network.
N/A
Table 41. Variable Internet Access in Schools
This indicator corresponds to survey asking: “How would you rate the level
of access to the Internet in schools in your country?” Values range from 1
(very limited) to 7 (extensive).
Direct source
Indirect source
Normalization
method
Description
known data.
World Economic Forum, Executive Opinion Survey, 2010, 2011 and 2012
editions
Table 42. Variable Accessibility of Digital Content
This indicator corresponds to a survey that asks: “In your country, how
accessible is digital content (e.g., text, audiovisual content, and software
products) via multiple platforms (e.g., fixed line Internet, wireless Internet,
mobile networks, and satellite)?” Values range from 1 (not accessible) to 7
(widely accessible).
Direct source
Indirect source
Normalization
method
known data.
editions
22 Description
Table 43. Variable Use of Virtual Social Networks
This indicator corresponds to a survey that asks: “How widely used are
virtual social networks (e.g., Facebook, Twitter, and LinkedIn) for
professional and personal communications in your country?” Values range
from 1 (not used at all) to 7 (used widely).
Direct source
Indirect source
Normalization
method
Description
Direct source
Indirect source
Normalization
method
Description
known data.
editions
Table 44. Variable Video Uploads on YouTube
This indicator corresponds to the total number of video uploads on
YouTube from citizens ranging in age from 15 to 64, expressed as a
percentage of the total population.
INSEAD, Global Innovation Index (GII), 2012
N/A
Table 45. Variable Tertiary Education Enrollment Rate
Tertiary enrollment rate is the ratio of total enrollment, regardless of age,
to the population of the age group that officially corresponds to the tertiary
education level. Tertiary education, whether or not it leads to an advanced
research qualification, normally requires, as a minimum condition of
admission, the successful completion of education at the secondary level.
(see below). Data for 2011 and 2012 were acquired from 2013 GCR (see
below).
Direct source
Indirect source
known data.
United Nations Education, Science and Culture Organization (UNESCO),
UNESCO Institute for Statistics Data Centre (accessed November 29,
23 Normalization
method
Description
2011), UNESCO Science Report 2010: The Current Status of Science
Around the World
World Bank, World Development Indicators 2009National Sources
Table 46. Variable Secondary Enrollment Rate
The reported value corresponds to the ratio of total secondary enrollment,
regardless of age, to the population of the age group that officially
corresponds to the secondary education level. Secondary education
(ISCED levels 2 and 3) completes the provision of basic education that
began at the primary level and aims to lay the foundations for lifelong
learning and human development by offering more subject- and skillsoriented instruction using more specialized teachers.
(see below). Data for 2011 and 2012 were acquired from 2013 GCR (see
below).
Direct source
Indirect source
Normalization
method
known data.
Sources: United Nations Education, Science and Culture Organization
(UNESCO), UNESCO Institute for Statistics Data Centre (accessed
November 29, 2012)
UNESCO, UNESCO Science Report 2010: The Current Status of Science
around the World
National Sources
24 Auxiliary variables
Additionally, a total of 9 auxiliary simple variables were considered for adjusting purposes. The
International Telecommunications Union compiled 4 and the World Bank compiled 5.
Table 47. Auxiliary Variable Population
Total population Description
Total population is based on the de facto definition of population, which
counts all residents regardless of legal status or citizenship—except for
refugees not permanently settled in the country of asylum, which are
generally considered part of the population of their country of origin. The
values shown are midyear estimates.
Direct source
Indirect source
Latest data available are for 2010 and 2011. Data for 2011 and 2012 are the
same under the criterion of last known data.
World Bank Indicators 2011
(1) United Nations Population Division. World Population Prospects, (2)
United Nations Statistical Division. Population and Vital Statistics Report
(various years), (3) Census reports and other statistical publications from
national statistical offices, (4) Eurostat: Demographic Statistics, (5)
Secretariat of the Pacific Community: Statistics and Demography
Programme, and (6) U.S. Census Bureau: International Database.
Table 48. Auxiliary Variable GDP
GDP
Description
Direct source
Indirect source
GDP at purchaser's prices is the sum of gross value added by all resident
producers in the economy plus any product taxes and minus any subsidies
not included in the value of the products. It is calculated without making
deductions for depreciation of fabricated assets or for depletion and
degradation of natural resources. Data are in constant 2005 USD. Dollar
figures for GDP are converted from domestic currencies using 2000 official
exchange rates. For several countries where the official exchange rate does
not reflect the rate effectively applied to actual foreign exchange
transactions, an alternative conversion factor is used.
World Bank National Accounts Data and OECD National Accounts Data
Files.
25 Table 49. Auxiliary Variable GDP per capita
GDP per capita
Description
Direct source
Indirect source
GDP per capita is gross domestic product divided by midyear population.
GDP at purchaser's prices is the sum of gross value added by all resident
producers in the economy plus any product taxes and minus any subsidies
not included in the value of the products. It is calculated without making
deductions for depreciation of fabricated assets or for depletion and
degradation of natural resources.
Latest data available is for 2010 and 2011. Data for 2011 and 2012 is the
World Bank National Accounts Data, and OECD National Accounts Data
Files
Table 50. Auxiliary Variable Households
Households
Description
Direct source
Indirect source
The indicator refers to the number of houses with one or more people living
inside.
Census reports and other statistical publications from national statistical
offices.
Table 51. Auxiliary Variable Population Density
Population density
Description
Population density is midyear population divided by land area in square
kilometers. Population is based on the de facto definition of population,
which counts all residents regardless of legal status or citizenship—except
for refugees not permanently settled in the country of asylum, who are
generally considered part of the population of their country of origin. Land
area is a country's total area, excluding area under inland water bodies,
national claims to continental shelf, and exclusive economic zones. In most
cases the definition of inland water bodies includes major rivers and lakes.
Direct source
Indirect source
Food and Agriculture Organization and World Bank Population Estimates.
Table 52. Auxiliary Variable Surface Area
Surface area (square kilometers)
Description
Surface area is a country's total area, including areas under inland bodies of
water and some coastal waterways.
26 Direct source
Indirect source
Latest data available are for 2010. Data for 2011 and 2012 are the same
under the criterion of last known data.
Food and Agriculture Organization (electronic files and web site)
Table 53. Auxiliary Variable Persons per household
Persons per household
Description
Persons per household, or average household size, is obtained by dividing
the number of persons (5.1) by the number of households (5.4).
Direct source
Prepared by the authors
Indirect source
World Bank Indicators 2011, International Telecommunication Union,
World Telecommunication/ICT Development Report and Database (2011)
Table 54. Auxiliary Variable Purchasing Power Parity (PPP) Conversion Factor
Purchasing power parity (PPP) conversion factor
Description
Purchasing power parity conversion factor is the number of units of a
country's currency required to buy the same amounts of goods and services
in the domestic market that a US dollar would buy in the United States. This
conversion factor is for GDP.
Direct source
Indirect source
World Bank, International Comparison Program Database
Table 55. Auxiliary Variable Fixed broadband Internet monthly subscription (USD)
Fixed broadband internet monthly subscription (USD)
Description
Fixed broadband sub-basket refers to the price of the monthly subscription
to an entry-level fixed broadband plan. For comparability reason, the fixed
broadband sub-basket is based on a monthly usage of (a minimum of) 1
Gigabyte (GB). For plans that limit the monthly amount of data transferred
by including caps below 1 Gigabyte, the cost for additional bytes is added to
the sub-basket. The minimum speed of a broadband connection is 256
kbit/s. Prices are reported and collected in national currency and then
converted to USD. Prices include taxes.
Direct source
Indirect source
In order to offer a comparable measure, the variable is multiplied by the
World Bank’s power parity factor. This variable is described among the
auxiliary variables.
Development Report and Database (2011)
N/A
27 3.5
Variables Normalization
Due to the heterogeneity of the variables, which range from absolute values to percentages, they
have been normalized to fit into the range of the IDBA from 1 (lowest) to 8 (highest). The
normalization methods include the following:
This method has been used for all percentage variables and the variable [secure Internet servers]
since it is measured per million of inhabitants.
Equation 2. Normalization Formula for Percentage Variables
𝑉! = 7 ∗
𝑣! − min (𝑣! )
max 𝑣! − min (𝑣! )
+1
𝑉! = 𝑛𝑜𝑟𝑚𝑎𝑙𝑖𝑧𝑒𝑑 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑣! = 𝑛𝑜𝑛 − 𝑛𝑜𝑟𝑚𝑎𝑙𝑖𝑧𝑒𝑑 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 min 𝑣! = 𝑚𝑖𝑛𝑖𝑚𝑢𝑚 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑗 𝑓𝑜𝑟 𝑎𝑙𝑙 𝑡ℎ𝑒 𝑐𝑜𝑢𝑛𝑡𝑟𝑖𝑒𝑠
max 𝑣! = 𝑚𝑎𝑥𝑖𝑚𝑢𝑚 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑗 𝑓𝑜𝑟 𝑎𝑙𝑙 𝑡ℎ𝑒 𝑐𝑜𝑢𝑛𝑡𝑟𝑖𝑒𝑠
This method was used for all variables whose values are within a range, except for four special
cases (see the following normalization method).
Equation 3. Normalization Formula for Range Variables
𝑉! = 7 ∗
𝑣! − min (𝑣! )
max 𝑣! − min (𝑣! )
+1
28 Normalization for range variables (special case)
This method has been used for four range variables: [number of competitors in fixed broadband],
[number of competitors in mobile broadband], [current status of Broadband development plans]
and [effectiveness of the fund for the universal access and service].
Table 56. Normalization Method for Variables: Number of Competitors in Fixed
Broadband and Number of Competitors in Mobile Broadband
No operator is offering the service.
1
Monopoly
2.75
Two operators are offering the service
4.5
(it is not necessarily a monopoly).
Three operators offer the service
6.25
Four or more operators offer the service.
8
Table 57. Normalization Method for Variable Current Status of Broadband Development
Plans
No broadband plan is available.
1
Broadband is in analysis phase.
3.33
Broadband is in plans, agendas, and similar 5.66
formats; but there is no national broadband
plan.
Three operators offer the service.
8
Table 58. Normalization Method for Variable Effectiveness of the Fund for Universal
Access and Service
No fund is available.
1
A fund exists, but it is not used for 4.25
broadband initiatives.
A fund exists, and it is used for broadband 6.25
initiatives but in a limited manner.
This method has been used for variables that have absolute values except for the variable of fixed
broadband Internet monthly subscription.
29 Equation 4. Normalization Formula for Absolute Value Variables 𝑉! = 7 ∗
log!" 𝑣! − log!" min (𝑣! )
log!" max 𝑣! − log!" min (𝑣! )
+1
Normalization for absolute value variables (special)
This method has been used for the variable [fixed broadband internet monthly subscription] since
it has an inverse effect on the development of broadband: the higher the price, the lower the
penetration
Equation 5. Normalization Formula for Absolute Value Variables (special case)
𝑉 = −7 ∗
𝑣 − min (𝑣)
+8
max 𝑣 − min (𝑣)
𝑉 = 𝑛𝑜𝑟𝑚𝑎𝑙𝑖𝑧𝑒𝑑 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒
𝑣 = 𝑛𝑜𝑛 − 𝑛𝑜𝑟𝑚𝑎𝑙𝑖𝑧𝑒𝑑 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 min 𝑣 = 𝑚𝑖𝑛𝑖𝑚𝑢𝑚 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑎𝑙𝑙 𝑡ℎ𝑒 𝑐𝑜𝑢𝑛𝑡𝑟𝑖𝑒𝑠
max 𝑣 = 𝑚𝑎𝑥𝑖𝑚𝑢𝑚 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑎𝑙𝑙 𝑡ℎ𝑒 𝑐𝑜𝑢𝑛𝑡𝑟𝑖𝑒𝑠
3.6
The Clusters
As explained before, the IDBA and its pillars are calculated not only for countries but also for
regions (i.e., the aforementioned clusters). The pillars are calculated using the aggregated value
of the variables in the cluster.
To determine the aggregated value of each one of the variables for a single cluster, the
former have been grouped. The grouping methodology varies according to the nature of the
specific variable. Four aggregation or grouping methods were used (see Table 59) for variable
and specific grouping methods.
30 •
By Population (POP). This method is used to aggregate variables that are expressed as a
fraction of the total population.
•
By GDP (GDP). This method is used to aggregate variables that express either economic
values or connection speeds in Mbps.
•
By Households (HOU). This method is used to aggregate variables that are expressed as a
fraction of the total number of households.
•
By number of countries (NUM). This method is used to aggregate variables that refer to
surveys or indexes.
Table 59. Grouping Method Per Variable
Variable
Government procurement of advanced technology products
Government prioritization of ICT
Importance of ICT to government vision of the future
Current status of broadband development plans
Fixed broadband monthly subscription charge
Laws relating to ICT
Effectiveness of the fund for the universal access and service
Internet and telephony sectors competition index
Number of competitors in fixed broadband
Number of competitors in mobile broadband
Percentage of the population covered by a mobile cellular network
Secure Internet servers
Percentage of households with a computer
Percentage of households with Internet access
Fixed broadband subscriptions per 100 inhabitants
Active mobile broadband subscriptions per 100 inhabitants
Fixed telephony lines per 100 inhabitants
Fixed broadband speed, in Mbit/s
International Internet bandwidth (bit/s) per Internet user
Firm-level technology absorption
eGovernment development index
Percentage of individuals using the Internet
Internet access in schools
31 Grouping
Method
NUM
NUM
NUM
NUM
GDP
NUM
NUM
NUM
NUM
NUM
POP
POP
HOU
HOU
POP
POP
POP
GDP
POP
NUM
NUM
POP
NUM
NUM
NUM
POP
POP
POP
4
Determining the Pillar Weights
The pillars are the key elements of the IDBA. In order to determine the weights of each one of
the pillars, an accurate analysis was performed that included both statistical analysis and expert
consultations.
4.1
Statistical Analysis
The independent variables selected to perform the correlation analysis are fixed broadband
penetration and mobile broadband penetration. These two variables were selected because they
are the ones that better explain broadband development in a country. Table 60 summarizes the
result of the correlation factor, R2, evaluated for each one of the pillars against these two
independent variables.
Table 60. Correlation Factor for the Pillars against Fixed Broadband Penetration and
Mobile Broadband Penetration
Pillar
Fixed Broadband
Mobile Broadband
Public policy and strategic vision
54%
44%
Strategic regulation
71%
55%
Infrastructure
94%
76%
Application and capacity
90%
70%
After evaluating the results of the statistical analysis, the infrastructure pillar stands out as
being the most important, since it is the one with higher correlations with the two independent
variables. Likewise, the pillar that represents application and capacity shows a high correlation
with the infrastructure variables. This is partly explained because this pillar is a consequence of
the level of development of the others. The pillar with least degree of correlation is the one
representing public policy and strategic vision. This lack of correlation may be explained by the
fact that there is a lag between the time when public policies are enacted and when the expected
results appear.
32 4.2
A Pillar Depending on the Other Three
Another statistical analysis was performed that focused on expressing every pillar depending on
the other three, by means of a multivariable linear regression. Table 61 summarizes the result of
the correlation factor, R2, evaluated for each one of the pillars against the combination of the
three other pillars.
Table 61. Correlation Factor for Each of the Pillars Against the Other Three Pillars
Pillar
Correlation with three other pillars
Public Policy and strategic vision
46%
30%
Infrastructure
90%
91%
From the table above, it appears that the strategic regulation pillar is the one that is less
correlated with the others. This is logical since its variables are more of a cause than an effect.
The infrastructure pillar is very conditioned by the other three. This also happens with the
applications and capacity pillar.
4.3
Expert Consultations
In parallel with the statistical analysis explained above, a series of expert consultations were
obtained. The question asked was: “How important do you consider the following factors to
explain broadband development in the Latin America and Caribe Region?” Table 62 summarizes
the results.
Table 62. Results of Expert Consultations (weights given to each of the pillars)
Pillar
Public policy and strategic vision
Infrastructure
Importance
23%
23%
33%
19%
33 The results show the importance given to infrastructure, which is the most important pillar
in the opinion of the experts. Public policy and strategic vision and strategic regulation were the
next two pillars in order of importance. Finally, the least important pillar, in the experts’ opinion,
was the pillar for application and capacity. Nevertheless, and as is noted in the table, the experts
considered all four pillars to be fairly important for broadband development.
4.4
Conclusions
The selection of the final weights for the pillars takes into account the two analyses described
above, the statistical analysis, and the expert consultations. Additionally, the quality and
availability of the data was also considered. Table 63 summarizes the analysis of the variables as
well as the final weights.
Table 63. Variables and Pillars’ Weight Calculation
Variable
Data Quality
(for each pillar)
Statistical
Analysis
(importance of
each pillar)
Survey Results
Final Weight
Public policy
and strategic
vision
Low
Strategic
regulation
Infrastructure
Application and
capacity
High
Very High
High
High
Very High
Very High
Very High
23%
20%
23%
25%
33%
40%
19%
15%
34 5
Main Results
Table 64 summarizes the 2012 results of the IDBA, which is led by Sweden, South Korea and
Iceland.
Table 64. IDBA Main Results
Country
Sweden
South Korea
Iceland
Luxembourg
United Kingdom
Finland
Denmark
Netherlands
Switzerland
United States
Estonia
New Zealand
Japan
Norway
Germany
France
Canada
Portugal
Austria
Australia
Israel
Belgium
Ireland
Slovenia
Spain
Chile
Barbados
Czech Republic
Hungary
Brazil
Turkey
Italy
China
Greece
Panama
Poland
Position at IDBA
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
35 IDBA Value
7.28
7.18
7.05
6.98
6.90
6.90
6.89
6.84
6.73
6.65
6.57
6.55
6.50
6.50
6.48
6.42
6.41
6.38
6.33
6.26
6.21
6.21
6.15
5.72
5.64
5.57
5.47
5.36
5.33
5.32
5.24
5.17
5.13
5.07
5.05
5.01
4.99
Russia
Uruguay
Colombia
Mexico
Argentina
Indonesia
Ecuador
India
Jamaica
Peru
Costa Rica
Dominican Republic
South Africa
Trinidad and Tobago
Bahamas
Venezuela
Paraguay
Guatemala
Nicaragua
Honduras
El Salvador
Guyana
Bolivia
Surinam
Belize
Haiti
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
4.97
4.81
4.77
4.62
4.53
4.37
4.34
4.32
4.29
4.26
4.23
4.22
4.22
4.14
4.04
3.80
3.78
3.71
3.64
3.58
3.52
3.16
3.16
3.12
3.11
1.71
Table 65 summarizes the 2012 results of the first pillar, public policy and strategic vision,
which is led by Sweden, Luxemburg, and Finland.
Table 65. Public Policies and Strategic Vision Pillar Main Results
Country
Sweden
Luxembourg
Finland
China
Portugal
South Korea
Estonia
United States
Israel
Position at public policies and
strategic vision pillar
1
2
3
4
5
6
7
8
9
36 Public policies and strategic
vision pillar value
7.86
7.77
7.30
7.12
7.00
6.86
6.80
6.69
6.68
Switzerland
United Kingdom
Denmark
New Zealand
Norway
Germany
Panama
Australia
Iceland
Netherlands
Barbados
Brazil
Chile
France
Japan
Canada
Austria
Uruguay
Belgium
India
Turkey
Indonesia
Colombia
Guyana
Ireland
Costa Rica
Mexico
Trinidad and Tobago
Dominican Republic
Ecuador
Jamaica
Surinam
Slovenia
Russia
Honduras
Spain
Hungary
South Africa
Peru
Czech Republic
Guatemala
Poland
Bolivia
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
37 6.56
6.36
6.34
6.30
6.27
6.25
6.22
6.21
6.14
6.12
6.04
5.87
5.82
5.80
5.79
5.78
5.77
5.67
5.62
5.54
5.48
5.37
5.31
5.06
4.97
4.92
4.79
4.78
4.58
4.54
4.44
4.24
4.12
4.09
4.07
4.05
3.97
3.97
3.80
3.45
3.39
3.39
3.23
3.19
Italy
Nicaragua
Paraguay
Argentina
Greece
Venezuela
El Salvador
Belize
Haiti
Bahamas
54
55
56
57
58
59
60
61
62
NA
3.19
3.08
3.00
2.98
2.97
2.92
2.36
1.97
1.35
NA
Table 66 summarizes the 2012 results of the second pillar, strategic regulation, which is
led by Estonia, Chile, and the United States.
Table 66. Strategic Regulation Pillar Main Results
Country
Strategic regulation pillar
Estonia
Chile
United States
Portugal
United Kingdom
India
Brazil
Turkey
Iceland
South Korea
Sweden
Colombia
Slovenia
Netherlands
Canada
Luxembourg
France
Hungary
Austria
Spain
Finland
Japan
Ireland
Germany
Switzerland
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
38 Strategic regulation pillar
value
7.76
7.53
7.52
7.43
7.39
7.38
7.34
7.32
7.30
7.30
7.27
7.27
7.25
7.25
7.23
7.18
7.18
7.14
7.13
7.08
7.07
7.07
7.03
6.99
6.97
Czech Republic
Belgium
Israel
Indonesia
Denmark
Peru
China
Poland
Argentina
Greece
Russia
Nicaragua
Paraguay
New Zealand
Norway
South Africa
Ecuador
Panama
Italy
Guatemala
Dominican Republic
Mexico
Australia
Jamaica
El Salvador
Venezuela
Bahamas
Bolivia
Honduras
Uruguay
Costa Rica
Belize
Barbados
Trinidad and Tobago
Haiti
Surinam
Guyana
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
6.94
6.91
6.91
6.90
6.86
6.86
6.86
6.80
6.74
6.69
6.68
6.65
6.62
6.62
6.60
6.60
6.59
6.56
6.53
6.50
6.48
6.43
6.18
6.09
6.04
5.94
5.87
5.46
5.46
5.41
4.83
4.80
4.66
4.52
3.98
3.34
3.14
1.92
Table 67 summarizes the 2012 results of the third pillar, infrastructure, which is led by
South Korea, Iceland, and Denmark.
39 Table 67. Infrastructure Pillar Main Results
Country
South Korea
Iceland
Denmark
Sweden
United Kingdom
Netherlands
Luxembourg
Switzerland
Germany
Japan
Finland
France
New Zealand
Norway
Ireland
Canada
Australia
Austria
United States
Belgium
Estonia
Barbados
Portugal
Israel
Slovenia
Spain
Italy
Czech Republic
Greece
Hungary
Poland
Bahamas
Russia
Chile
Uruguay
Turkey
Brazil
Argentina
Trinidad and Tobago
Mexico
Infrastructure pillar
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
40 Infrastructure pillar value
7.52
7.24
7.16
7.15
6.98
6.92
6.90
6.79
6.76
6.75
6.56
6.47
6.45
6.37
6.31
6.23
6.21
6.16
6.12
6.05
5.80
5.67
5.64
5.63
5.61
5.52
5.50
5.27
5.21
4.98
4.93
4.86
4.73
4.65
4.43
4.27
4.23
4.12
4.03
3.91
3.85
Panama
Costa Rica
China
Jamaica
Ecuador
Colombia
South Africa
Peru
Guyana
Venezuela
Dominican Republic
Paraguay
Belize
Surinam
El Salvador
Indonesia
Nicaragua
Honduras
Guatemala
India
Bolivia
Haiti
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
3.70
3.52
3.32
3.29
3.28
3.24
3.19
3.04
2.95
2.91
2.88
2.86
2.86
2.80
2.74
2.66
2.60
2.43
2.41
2.39
1.92
1.00
Finally, Table 68 summarizes the 2012 results of the fourth pillar, application and
capacity, which is led by Iceland, Finland, and Denmark.
Table 68. Application and Capacity Pillar Main Results
Country
Iceland
Finland
Denmark
Netherlands
Sweden
Norway
Australia
New Zealand
United Kingdom
United States
South Korea
Switzerland
Canada
Position at application and
capacity pillar
1
2
3
4
5
6
7
8
9
10
11
12
13
41 Application and capacity pillar
value
7.34
6.98
6.95
6.89
6.89
6.83
6.75
6.71
6.62
6.58
6.49
6.42
6.39
Estonia
Austria
Belgium
Israel
Luxembourg
Ireland
Japan
France
Portugal
Barbados
Spain
Slovenia
Czech Republic
Hungary
Bahamas
Germany
Uruguay
Chile
Greece
Italy
Panama
Brazil
Poland
Costa Rica
China
Argentina
Trinidad and Tobago
Russia
Turkey
Colombia
Mexico
Venezuela
Jamaica
Peru
Dominican Republic
Indonesia
South Africa
Guyana
Ecuador
El Salvador
Guatemala
Honduras
India
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
42 6.34
6.23
6.23
5.94
5.83
5.82
5.82
5.81
5.76
5.75
5.66
5.65
5.58
5.52
5.22
5.21
5.09
5.06
5.00
4.78
4.69
4.58
4.43
4.42
4.25
4.25
4.22
4.19
4.16
4.12
3.99
3.90
3.87
3.85
3.76
3.66
3.47
3.30
3.27
3.16
3.14
2.99
2.91
2.76
Belize
Bolivia
Paraguay
Surinam
Nicaragua
Haiti
5.1
58
59
60
61
62
63
2.69
2.58
2.55
2.46
2.17
1.36
What the Ranking Shows
The results obtained from the IDBA suggest that countries are situated along the digital divide at
primarily one of three different stages of growth: exponential, inflective, and linear.
Figure 3. IDBA and GDP Per Capita
BBDI and GDP per capita
8
7
Linear area
6
Caribe
Caribbean
5
Centro
América
Central
America
B
B
4
D
I
Inflection area
Southern
Cono
Sur Cone
Países
Andinos
Andean
OCDE
OCDE
3
Exponential area
2
1
0
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
GDP per capita ($US at current prices)
As a result, countries can be grouped into three different categories:
•
Countries that need to take action in each of the four dimensions of the broadband
ecosystem (four pillars on the IDBA). These countries are those located at the
exponential stage and their IDBA is below 4.
43 •
Countries that have basic infrastructure but need to revise their regulatory framework in a
way that fosters investment and innovation. These countries are located at the inflection
stage and their IDBA is between 4 and 6.
•
Countries where infrastructure is adequately developed, but where the major areas of
improvement are those related to the development and use of services and applications.
These countries are in the linear stage of growth and their IDBA is above 6.
6
Sources
It is important to distinguish between the sources of information used in the compiling of the
IDBA. On the one hand, the IDBA was created and produced by a set of experts from InterAmerican Development Bank and from the consulting firm of Deloitte. As for the information
itself, the IDBA relies on a conglomerate of existing variables that were produced and
consolidated by highly renowned institutions (see the variables section for the specific source for
each particular variable). These sources are as follows (in alphabetical order):
7
•
INSEAD
•
Inter-American Development Bank
•
International Telecommunications Union
•
United Nations
•
World Bank
•
World Economic Forum
Data Availability
The IDBA was computed for three consecutive years: 2010, 2011, and 2012. When data was not
available for a given year, data of the latest year available was considered for that year. In the
event that no data was available for a variable, then that variable was ignored and its weight was
distributed among the rest of the variables.
44 8
8.1
Next Steps
Improvements to the Index
The IDB experts as well as renowned experts from academia, the public sector, and industry will
review the IDBA on a yearly basis to update its structure and verify the accuracy of the weights
assigned to the pillars and variables. Table 69 summarizes possible future improvements to the
IDBA.
Table 69. Future Improvements to the IDBA
Name of the
improvement
GDP per capita
clusters
Personalized clusters
Include more
countries
8.2
Description
Difficulty
This functionality allows for the clustering of
countries depending on their GDP per capita. This is
particularly useful to show how a country is
performing in relation to similar economies.
This feature consists of the creation of personalized
clusters (i.e., the ability to select a certain group of
countries and place them into a cluster at the
discretion of the user).
In order to broaden the spectrum of data inside the
index, this feature considers including data not only
from the IDB and OECD countries but also from
other countries reported in the WEF and ITU indexes.
Medium
High
High
Data Visualization: The Web Platform
The usefulness of the IDBA will dramatically increase when the data become available on the
Inter-American Development Bank Broadband Platform. The objective is to broaden the target
audience that will access the index results, as well as to incorporate visualization features. This
platform will provide a simple, intuitive, and complete visualization of the index, its pillars, and
their variables. The Broadband Platform aims to become a reference inside the region and will
provide not only IDBA visualization but also provide research reports, infrastructure maps, and
other important information that promotes the development of broadband.
45 9
Final Conclusions
The holistic approach of the IDBA is a tool for diagnosis as well as a facilitator of dialogue for
the IDB countries. It is clear that the Digital Divide is a reality. Countries acknowledge that the
lack of access to broadband and ICTs creates digital exclusion, but more importantly, it creates
social exclusion. The current challenge is how and where to prioritize actions, plans, and
investment. The IDBA is a powerful tool for making progress around its four pillars: (i) public
policy and strategic vision, (ii) strategic regulation (iii), infrastructure, and (iv) application and
capacity. Moreover, the ranking of countries in the IDBA should not be regarded as a mere
classification but as an effective means to: (i) identify countries’ strengths and successes so that
they can inspire other countries, and (ii) identify the areas in which countries’ need to define
strategic and efficient plans and actions to make improvements across all the elements of the
broadband ecosystem.
46

Methodology for the Broadband Development Index (IDBA) for Latin

Transcription

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